Verizon confirms move to 12-month payments for devices with no contract ties

Verizon Wireless has just updated its smartphone purchase program making it look much more like T-Mobile’s Un-carrier initiative. Starting April 21 Verizon customers would be able to buy a phone at its full price before the end of their contract and some devices will be offered on a 12-month instalments via the Verizon Wireless Device Payment Plan.

This is a big change from the current policy that only covers tablets costing at least $349.99 and the Samsung Galaxy Camera. After the changes take effect, customers will be able to buy up to two gadgets, and whenever they pay off one of them they’d be able to immediately purchase a new one to fill the two device limitation.

"The first installment and finance charge is due at the time of purchase," the company said. "Subsequent installments and finance charges will appear on your monthly Verizon Wireless bill and will be listed separately from your other charges. Qualifying devices must be $349.99 or more per device, after all discounts and promotions and before taxes are applied."

T-Mobile’s Un-carrier initiative brings a radical change to the 2-year upgrade model used by US carriers and this obviously comes as a reaction to it.

"I'm happy when I see something different tried. We can react quickly to consumers' shifting needs," Verizon CEO Lowell McAdam said earlier.

This is nothing like TMO's UNcola...I mean, UNcarrier initiative because Verizon is still charging you the same monthly fee as someone whose phone was subsidized (meaning the service fee includes the repayment cost of the equipment buried in the numbers).

That's not how it works. You have to purchase a device thats over $349.99. Then you divide the total price by 12. You will pay your 1st installment in the store or online, then your bill in the next 11 months will add each installment. You can pay off the device at anytime.

I think your missing a very important point in the article in that they pay an initial finance charge as well as the initial installment. The question is that....does someone have to pay finance fees durring the next 11 months?

3.InspectorGadget80 (unregistered)

I can now purchase a phone at full price and pay a monthly finance charge directly to verizon..

How is this any different than say using a credit card to purchase your device? It isn't like Verizon is lowering their service charges for these non-contract phone lines. At least with a credit card you can earn points or other discounts.

Verizon really is making me sick recently. If I didn't still have unlimited LTE data, I would have left ages ago.

It's tmobile not verizon. Verizon just wants to be secure incase some of their customer decide to flock over to tmobile which... in reality probably won't happen. But! For some people these new "plans" can be beneficial IF you don't upgrade your phone every 2 years, but more like every 3-5 years. If they follow suit with tmobile they will lower the monthly charges by a OK amount. [nothing too drastic]

Lol. I dont maybe we are still locked until we pay it off which will take two years. If I got a contract and canceled it...350 for ccanceling 200 for phone 550 comes to the price of the phone..now how many ppl really cancel it. ..oh it doesn't change the price of the plan ot should be cheaper so your right which part is scam

I believe part of the argument for why the big US carriers charged more money was because of the device subsidies. Now that they are removing these subsidies, Verizon is obviously reducing operating costs by a significant amount.

So... where are our lower rates based on this new model?

There aren't any lower rates. Verizon is merely defining another way to F the customer.

At least T-Mo has/had a plan where if you bring your own device or buy one at full retail, you'd get a cheaper plan.

You KNOW Verizon will charge the same rates and now make you pay full retail for the phone.

And.. yes I realize that right now it looks like a way to buy phones early, but this is definitely going to be the model going forward.

The device installment plan is a way for those customers that want to buy newer devices every year afford them. EVERY carrier wants to get away from subsidies.

Companies like US Cellular have huge debts for device loans right now because of all the subsidizing they have done and then losing customers that they can not afford to pay on those loans. They are currently pulling out of Illinois (Chicago Market) and retreating into Wisconsin.

T-Mo might be onto something, but the greater American public is so used to not paying for there phones that subsidizing devices will always be a part of wireless culture for a bit.

Yes, wireless costs for the consumer, are going up. But that doesn't make this pricing model a scam.

It's optional. So if a customer is getting "f'd," it's by choice. Additionally, there's a reason tmobile has to drop prices. If all things were equal, they would have no competitive advantage over their competition. Their network is absolute trash.

And that's where the other shoe is going to drop. VZW has no respect for the term "Grandfathered", so I can see them just eliminating unlimited all together very soon. Just lost my new Every Two credit on the 15th, and unlimited data is the only perk left.

There is only so much LTE spectrum to go around. (It's why you hear alot of info about Verizon's spectrum buys) If Sprint & T.Mo had the install base ATT and Verizon have they would not be able to support unlimited data. Verizon can't take away your Unlimited cause you signed a contract thats binding. If they wanted to take it away, they would have done so a long time ago. Verizon and ATT both hate unlimited data and its the only leg TMo and Sprint have left to stand on.

True, but it's not like the unlimited users are all streaming Netflix 24/7. If an unlimited customer and a shared data customer both use 3GB of data in the same month, it cost VZW the exact same amount. The only difference is how much profit can be made, and lets face it... The shared data customer is the cash cow depending on his/her plan.

Verizon took away unlimited data to make room for new customers, I'm cool with that. I'm even cool with them charging a little bit more to "grandfather" unlimited customers. But what they've done is raise the price of every unlimited customers bill by a minimum $600 per year based on what device your willing to buy out right. And thats just one more reason why VZW sucks.

That is unfortunate, but it still doesn't compare to the crap VZW does to it's customers. Tmobile is looking so good right now, I don't even think I'll wait for my contract to end. And it works fantastic in the areas I need it for. Win, win!

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